Ethereum’s Uphill Battle Continues

Ethereum’s price has been grappling with resistance for nearly two months. Despite this, the investor sentiment remains strong, particularly among significant holders of ETH tokens.

A Glimpse of Hope for Ethereum

Ethereum’s price, currently trading at $1,568, recently rebounded from the $1,533 support line, showing some upward movement. However, it struggled to breach the 50-day Exponential Moving Average (EMA). Had it succeeded, ETH would have been on its way to reestablishing the $1,686 resistance level as a support base.

The Relative Strength Index (RSI) provides a glimmer of hope. It hovers around the neutral mark at 50.0, in the bearish zone. With further recovery, the RSI could pivot into a support floor, signaling a confirmed bullish trend. Yet, should the $1,533 support be lost, the bullish scenario would be compromised, potentially leading Ethereum’s price below $1,500.

Guardians of Ethereum: The Whales

While the possibility of a price decline persists, Ethereum’s fate could be influenced by its investors, particularly the whales. While Ethereum isn’t a cryptocurrency primarily dominated by whales, they hold considerable sway due to their significant investments.

Data from Santiment reveals that wallet addresses with over 1 million ETH have consistently been accumulating and now control approximately 32.3% of the entire circulating supply. This marks the highest concentration in these addresses since July 2016, signifying a seven-year record.

Of note is that this accumulation isn’t random. The chart below demonstrates that these whales began accumulating ETH around mid-August, coinciding with a dip in Ethereum’s price. Since then, their holdings have increased by more than 1.5% and continue to grow.

Eyes on Ethereum’s Future

The growing concentration of ETH among these whales is poised to have a positive influence on Ethereum’s price, potentially providing the boost required to push the altcoin beyond the $1,600 mark. This concentrated holding reveals investor confidence in Ethereum’s long-term prospects and suggests a path to recovery.